Swarovski is fighting for survival

Swarovski is fighting for survival

Almost everything at the headquarters of the Swarovski crystal empire in Wattens in the Austrian Tyrol glitters and shines. But appearances are deceptive: a bitter family dispute is raging behind the scenes about the future of the company. The 650,000 tourists who flocked to the company premises each year have long concealed the family clan's economic difficulties. But the Corona crisis has exposed the problems surrounding the realignment of the group. 125 years after founder Daniel Swarovski developed a machine that cuts glass so that it shimmers like diamonds, his great-great-grandchildren rule a broad company. Swarovski sells rhinestones for fashion brands, binoculars for hunters, and jewelry and crystal figures from Mickey Mouse to Princess Leia. But managing director Robert Buchbauer, fifth generation of the family business, insists on a drastic change: "We are forced to rethink our entire Swarovski business," he says at the headquarters in Wattens. Swarovski's crystals may have adorned the outfits of celebrities like Beyoncé and Marilyn Monroe and were used by designers like Christian Dior, but according to Buchbauer, they lose their shine with business customers. Crystals from competitors in China sparkle just as brightly - for just one percent of the price. In addition to this already ruinous competition, says Buchbauer, the pandemic has resulted in "huge losses in sales". From 2.7 billion euros in 2019, revenue fell to around 1.9 billion euros last year. The long-planned, far-reaching cuts have only become more urgent.